Singapore Airlines 2001 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ...Product and Service Development Fleet Rout e Development SIA Cargo Subsidiaries and Associat ed Companies Communit y Relat ions Our People Corporat e Governance Financials 105 Not ice of Annual General M eet ing and Closure of Books SIA an n u al r ep o r t 00/01 Regist ered Address Airline House...

  • Page 3
    Legendary Service Singapore Airlines' legendary customer service standards are symbolised by the gracious "Singapore Girl". In her distinctive uniform, a sarong kebaya in batik material, she personifies SIA's tradition of friendly service and Asian hospitality. 1 SIA an n u al r ep o r t 00/01

  • Page 4
    ...+ 10.2 + 15.0 - + + 2.1 5.7 1.4 * Including 4.75 cents per $1 ordinary share tax-exempt dividend for 1999-2000. NOTES 1. 2. 3. 4. 5. 6. Singapore Airlines' financial year is from 1 April to 31 M arch. Throughout this report all figures are in Singapore Dollars, unless stated otherw ise. Return on...

  • Page 5
    ...-km expressed as a percentage of cargo capacity tonne-km Operating revenue from scheduled services divided by load tonne-km Operating expenditure divided by capacity tonne-km Theoretical load factor at w hich operating expenditure equals operating revenue, i.e. unit cost divided by yield 3 SIA an...

  • Page 6
    Board of Directors M ichael Y O Fam Cheong Choong Kong SIA an n u al r ep o r t 00/01 Edmund Cheng Wai Wing Fock Siew Wah Charles B Goode Ho Kw on Ping 4 Koh Boon Hw ee M oses Lee Kim Poo Lim Boon Heng Lim Chee Onn Raymund Ng Teck Heng Davinder Singh Tjong Yik M in

  • Page 7
    ... Chairman, Keppel Corporat ion Lt d Raym und Ng Teck Heng Chief of Air Force, M inist ry of Def ence (unt il 1 April 2001) Davinder Singh M anaging Direct or, Drew and Napier, LLC Tjong Yik M in Group President , Singapore Press Holdings Lt d 5 M oses Lee Kim Poo SIA an n u al r ep o r t 00/01

  • Page 8
    ... Traveller Asia-Pacif ic 2000 Annual Travel Aw ards, including ' Best Int ernat ional Airline' . But in the very last hour of October, according t o Singapore t im e, t he Airline' s proud accident -f ree record cam e t o an end on a closed runw ay in Taipei. SIA received praise and much goodw ill...

  • Page 9
    ... position as one of the w orld' s most successful and admired airlines. After nearly 29 years, I shall be sad t o st and dow n, but SIA w ill be in good hands. The Board of Direct ors has recommended t hat M r Koh Boon Hw ee be appoint ed t o succeed m e as Chairm an, subject t o his elect ion...

  • Page 10
    ... Y O Fam SIA an n ual rep ort 00/ 01 Deput y Chairman and Chief Execut ive Of f icer Re g ist e re d O f f ice A u d it Co m m it t e e Chairman Cheong Choong Kong M embers Airline House 25 Airline Road Singapore 819829 M ichael Y O Fam M embers Bey Soo Khiang (unt il 15 July 2000) Edm und...

  • Page 11
    ...ent of 2000-2001 f inal dividend (subject t o shareholders' approval at AGM ) M ak Sw ee Wah Senior Vice-President West Asia and Af rica Singapore Airport Term inal Services Lt d Prush Nadaisan Ng Kian Wah 26 Oct ober 2001 Announcem ent of 2001-02 half -yearly result s 22 November 2001 Dat e of...

  • Page 12
    ... company, to introduce the Telemedical Service on board its flights. The service allow s cabin crew to consult medical staff on the ground if a passenger becomes ill on board. SIA joins eight other Asia-Pacific airlines to launch Travel Exchange Asia, an Internet portal that offers customers...

  • Page 13
    ... as passenger versions. The first aircraft w ill join the fleet in 2006. SIA and American Express launch a cobrand credit card in four Asian markets (Singapore, Hong Kong, M alaysia and Taiw an) that allow s customers to use their everyday purchasing pow er to earn KrisFlyer miles and other benefits...

  • Page 14
    ...back the boundaries to provide customers with the world's best air travel ex perience, and one way the Airline is achieving this is by helping its customers stay connected at all times, on the ground and in the air. GLO BA L EX PA N SIO N During t he year ending 31 M arch 2001, SIA made signif icant...

  • Page 15
    13 SIA an n u al r ep o r t 00/01

  • Page 16
    ... Class. By com plet ing an e-m ail check-in f orm on SIA' s w ebsit e, cust om ers can receive confirmation of their seat numbers by ret urn e-m ail w it hin an hour. In June 2000, SIA joined f orces w it h eight ot her leading airlines t o launch Travel Exchange Asia, an indust ry-leading Internet...

  • Page 17
    ..., it is anot her example of how SIA is t aking advant age of Int ernet -based t echnology t o st ream line it s w ays of doing business. Airframe, avionics and engine components, m aint enance services, and a range of general goods and services w ill be bought and sold t hrough t he exchange...

  • Page 18
    ...2000, SIA t eam ed up w it h Int ernat ional SOS, t he w orld' s largest m edical assist ance com pany, t o provide a service t hat allow s cabin crew t o consult m edical st aff on t he ground if a passenger becom es ill on board. Called t he Telem edical Service, it is available SIA an n u al r ep...

  • Page 19
    ... el chains, t hree credit /charge card com panies, t hree car rent al agencies and a t elecom m unicat ions service provider. In Sept em ber 2000, SIA and Am erican Express launched t he Am erican Express Singapore Airlines KrisFlyer credit card in Singapore, M alaysia, Hong Kong and Taiw an. This...

  • Page 20
    ... Travel Aw ards in the airline section. Besides being voted ' Best International Airline' , it also emerged tops in seven other categories: First Class, Business Class, Cabin Crew Service, Inflight Entertainment, Comfort of Seating, Inflight Food, and W ine Cellar. At its home base in Singapore, SIA...

  • Page 21
    ... Aw ards (UK) Best Airline to Asia The A380, pow ered by Rolls-Royce Trent 900 engines, w ill be capable of carrying m ore t han 500 passengers and w ill be deployed on high-densit y, long haul rout es t o London, Los Angeles, New York, San Francisco and Sydney. Deliveries are scheduled f rom 2006...

  • Page 22
    ... rout es. This codeshare allow s SIA to market SingaporeAt hens, Delhi, Denpasar, Frankf urt , Hong Kong, Karachi, Lahore, Osaka, Seoul, Surabaya and Sydney saw signif icant increases in flight frequency in 2000, w hile larger-capacit y aircraf t w ere used t o cat er to increased demand on services...

  • Page 23
    ... of sales missions and trade shows. Pro m o t in g t o u rism As part of it s m ission t o help develop Singapore int o a sport ing and cult ural event cit y, SIA cont inued it s sponsorship of t he Singapore Airlines Int ernat ional Cup - at $3 m illion, one of t he w orld' s richest horse races...

  • Page 24
    ... Asia' by Cargo New s Asia. In April 2000, SIA, Luf t hansa and SAS SIA CA RGO SIA current ly operat es nine f reight ers, w it h eight m ore on f irm order, all t o be delivered bet w een 2001 and 2005. In t he year of review, SIA Cargo' s overall capacity expanded by 7.7 per cent and revenue...

  • Page 25
    SIA Cargo int roduced several new f reight er services in Oct ober and Novem ber 2000, adding Jakart a, Osaka and Penang t o t he f reight er net w ork. During t he sam e period, f reight er f requency w as increased t o Bangalore, Chennai, Copenhagen, Dublin, Paris, Los Angeles and San Francisco. ...

  • Page 26
    ... Evergreen Airline Services Corporat ion, w hich provides ground handling services at Taipei' s Chiang Kai Shek airport . As at 31 M arch 2001, it s st ake w as pared dow n t o 19.21% af t er more shares w ere issued t o employees of Evergreen Airline Services Corporat ion. As t he year under review...

  • Page 27
    ... service t o Langkaw i in M alaysia. As at 31 M arch 2001, it operat ed 93 scheduled revenue f light s each w eek t o 18 dest inat ions. SilkAir w as aw arded ' Best Regional Airline of t he Year' by Travel Asia m agazine and w on t he ' Airline of t he Year' aw ard f rom t he Cebu Travel and Tours...

  • Page 28
    ... SATS has a 35 per cent stake. In addit ion, Silver Kris Lounges w ere upgraded or const ruct ed in M anila, San Francisco and Sydney. Sim ilar lounge project s are in progress in London, M elbourne, Osaka and Seoul. SIA off ices in Adelaide, Bangkok, Denpasar, Kuala Lum pur, London and Tokyo w ere...

  • Page 29
    ... t o cent ral bank rat e hikes at t he beginning of t he f inancial year. Sin g -Bi Fu n d s Pt e Lt d Sing-Bi Funds Pt e Lt d, a Singapore-based subsidiary, is responsible f or t he regional port f olio invest m ent act ivit ies of t he SIA Group. It s f unds are m anaged by t hree ext ernal f und...

  • Page 30
    ... ually Disabled of Singapore. SIA cont ribut ed $4 m illion t ow ards t he cost of const ruct ing and equipping t he building, w it h SIA SIA an n u al r ep o r t 00/01 The year also saw t he Airline launch t he SIA Club Sunday program m e in conjunct ion w it h Lions Bef rienders. SIA w ill cont...

  • Page 31
    ...of pilot s, w e have t o act ively recruit t o f ill vacant capt ain posit ions. As at 31 M arch 2001, SIA em ployed 1,645 t echnical crew, an increase of 7.4 per cent on t he previous year. SIA recruit ed cabin crew f rom Singapore and t radit ional alt ernat ive sources, including Hong Kong, India...

  • Page 32
    ... ion paid t o m ajor invest m ent s and f inancial perf orm ance. 2.1 The Board supervises t he 2.2 The Board m em bers are: Chairman M ichael Y O Fam SIA an n u al r ep o r t 00/01 Deput y Chairman and Chief Execut ive Of f icer Cheong Choong Kong M embers Bey Soo Khiang (unt il 15 July 2000...

  • Page 33
    ... m anagem ent ; f inancial risk m anagem ent ; and share buyback. c) Execut ive Recruit ment and Select ion i) ensure that a sufficient number of suitable candidates are recruited and/or promoted to leadership positions; d) Leadership Developm ent and Top M anagem ent Succession i) monitor the...

  • Page 34
    ... St at ement s Addit ional Inf ormat ion Half -Yearly Result s of t he Group Five-Year Financial Summary of t he Group Ten-Year Chart s/SIA's Fleet Ten-Year St at ist ical Record of t he Company 100 Group Corporat e St ruct ure 102 Inf ormat ion on Shareholdings 104 Share Prices and Turnover 32

  • Page 35
    ... spare engines, and t he sale of spares and ot her spare engines; (iii) low er gross dividends f rom subsidiaries and associat ed companies of $60 million [Singapore Airport Terminal Services Limited (SATS) and SIA Engineering Company (SIAEC) did not pay a f inal dividend f or f inancial year 1999...

  • Page 36
    ... t he carriage of a higher proport ion of passenger in t he t raff ic mix (+0.5 percent age point ), part ially off set by a 1.9% loss f rom t he st rengt hening of t he Singapore Dollar against t he bulk of f oreign currencies making up t he Company's revenue. Unit cost w ent up 3.9% (mainly f rom...

  • Page 37
    ... and M ail Cargo Passenger Passenger Seat Fact or (% ) Overall Load Fact or (% ) Overall Yield (¢/lt k) Overall Load Fact or (% ) Breakeven Load Fact or (% ) Unit Cost (¢/ct k) REVENUE revenue w as $933 million (+10.3% ) higher at $9,951 million. The Airline Company's revenue increase w as...

  • Page 38
    ... of t he Airline Company came f rom Passenger revenue, a drop of 0.9 percent age point f rom last year's cont ribut ion, w hile t he proport ion f or cargo revenue w as 22.5% , dow n 0.4 percent age point . Non-scheduled services and incident al revenue rose $15 million (+3.5% ) mainly because of...

  • Page 39
    ...0 1996/97 1997/98 1998/99 1999/00 2000/01 0 Group Company 37 The increase in st aff cost s of $145 million (+12.1% ) w as mainly because of (i) higher provisions f or prof it -sharing bonus, (ii) w age SIA an n u al r ep o r t 00/01 A 36.7% increase in w eight ed average f uel price + 499

  • Page 40
    ...Privat e Limit ed, and (ii) higher communicat ion expenses (+$6 million). SIA an n u al r ep o r t 00/01 The movement in Singapore Dollar year-on-year against f oreign currency expendit ure result ed in an increase in expendit ure of $1 million in 2000-01. Company Expendit ure Composit ion 2000/01...

  • Page 41
    ... AND GOODW ILL During t he year under review, t he Company acquired a 25% equit y int erest in Air New Zealand Limit ed (ANZ) class B shares, in t w o t ranches of 8.3% in April 2000 and 16.7% in August 2000, at an aggregat e cost of $352 million. Goodw ill arising f rom t he acquisit ion amount ed...

  • Page 42
    Financial Review FINANCIAL POSITION At 31 M arch 2001, the shareholders' funds of the Group amounted to $11,608 million, an increase of $651 million (+5.9% ) from a year ago after accounting for (i) share buyback of 30,334,600 shares during the year at a total cost of $476 million (including ...

  • Page 43
    ...Pacif ic rout es had a 13.3% share, dow n 0.4 percent age point , and t he cont ribut ion f rom West Asian and Af rican rout es w as 10.3% , a marginal drop of 0.1 percent age point . About t hree quart ers of t he Company' s revenue collect ions in 2000-01 w ere mainly in Singapore Dollars, Unit ed...

  • Page 44
    .... Capacit y grow t h w as 8.9% mainly f rom addit ional services mount ed t o Hong Kong, Seoul, Osaka, Denpasar, Jakart a, Bangkok and Surabaya. Overall load f act or w as 0.5 percent age point bet t er at 65.7% . The w eakening of Singapore Dollar against Japanese Yen, New Taiw an Dollar and Korean...

  • Page 45
    ...Profit After Tax ($ million) 2000 - 01 1999 - 00 Average Number of Employees 2000 - 01 1999 - 00 Airline operat ions Airport t erminal services Engineering services Ot hers 1,434 175 116 26 1,751 1,301 160 306 18 1,785 (618) 1,167 14,730 9,147 4,037 422 28,336 14,196 8,923 3,925 469 27,513 SIA...

  • Page 46
    ... Review SINGAPORE AIRPORT TERM INAL SERVICES GROUP (continued) Group expendit ure increased by $83.8 million (+13.8% ) t o $692.6 million. This w as at t ribut able t o higher (i) st aff cost s, (ii) company accommodat ion cost s, (iii) cost s of services rendered by SIA, (iv) mat erial cost...

  • Page 47
    ... Prof it on sale of invest ment s Surplus on liquidat ion of Abacus Dist ribut ion Syst ems Tot al value added available f or dist ribut ion Applied as f ollow s:To employees - Salaries and ot her st aff cost s To government - Corporat ion t axes To suppliers of capit al - Dividends - Int erest on...

  • Page 48
    ... w as $0.04 higher (+16.7% ) at $0.28 in 2000-01. The Group's value added f or t he calendar year 2000 account ed f or 3.1% of Singapore's Gross Domest ic Product , 0.1 percent age point higher t han last year's cont ribut ion. SIA an n u al r ep o r t 00/01 Value Added f or t he Group 6,000 5,000...

  • Page 49
    ...STAFF STRENGTH AND PRODUCTIVITY During t he year under review, t he Airline Company had an average st aff st rengt h of 14,254, up 534 (+3.9% ) f rom t he previous year. The increase w as mainly in cabin (+361) and t echnical (+85) crew t o cat er t o a 6.6% grow t h in capacit y. The dist ribut ion...

  • Page 50
    ...rom t he new er f leet of B777 passenger aircraf t w it h an average age of 2.5 years. A change in f uel product ivit y of 1.0 percent w ould impact t he Company's annual f uel cost s by $19 million. A change in price of one US cent per American gallon aff ect s t he Company's annual f uel cost s by...

  • Page 51
    ...'s earnings are aff ect ed by changes in t he price of jet f uel. The Company manages t his risk by using sw ap and opt ion cont ract s up t o 24 mont hs f orw ard. A change in price of one US cent per American gallon aff ect s t he Company's annual f uel cost s by S$21 million, bef ore account ing...

  • Page 52
    ... orders, many of w hich relat e t o aircraf t w hich w ill not be delivered f or several years. The company's policies in t his regard are in line w it h t he f unding policies of ot her major airlines. SIA an n u al r ep o r t 00/01 Derivative Financial Instruments The Company's policy on t he use...

  • Page 53
    ... ing t o $184.2 million, be paid. SIA an n u al r ep o r t 00/01 51 4 Principal Activities The principal act ivit ies of t he Group and of t he Company consist of air t ransport at ion, engineering services, airport t erminal services, t raining of pilot s, air chart ers and t our w holesaling and...

  • Page 54
    ...'s holding company:Direct interest 1.4.2000/ Date of appointment 31.3.2001 21.4.2001 1.4.2000/ Date of appointment Deemed interest 31.3.2001 21.4.2001 Name of Director Interest in Singapore Airlines Limited Ordinary shares of $1.00 each M ichael Y O Fam Cheong Choong Kong Charles B Goode Opt ions...

  • Page 55
    ...Subsidiary Companies On 23 August 2000, t he Company incorporat ed a w holly-ow ned subsidiary company, Singapore Airlines Cargo Privat e Limit ed, w it h a paid-up capit al of $2. During t he f inancial year, a subsidiary company, SATS Apron Services Pt e Lt d, w as liquidat ed. SIA an n u al r ep...

  • Page 56
    ...Public Off erings of t w o subsidiary companies, Singapore Airport Terminal Services Limit ed (SATS) and SIA Engineering Company Limit ed (SIAEC). On 5 M ay 2000, t he Company disposed of vendor shares represent ing 13.0% equit y int erest s in SATS and SIAEC in connect ion w it h t heir respect ive...

  • Page 57
    ... year under review Options lapsed Cheong Choong Kong 240,000 480,000 - - 480,000 13 Options on Shares in Subsidiary Companies The part iculars of opt ions on shares in subsidiary companies are as f ollow s:- (a) Singapore Airport Terminal Services Limited (SATS) The Singapore Airport...

  • Page 58
    Report by the Board of Directors 13 Options on Shares in Subsidiary Companies (continued) (b) SIA Engineering Company Limited (SIAEC) The SIA Engineering Company Limit ed Employee Share Opt ion Plan, w hich comprises t he Senior Execut ive Share Opt ion Scheme and t he Employee Share Opt ion Scheme...

  • Page 59
    ...402,600 shares. 16 Auditors The audit ors, Ernst & Young, Cert if ied Public Account ant s, have expressed t heir w illingness t o accept re-appoint ment . On behalf of t he Board, M ICHAEL Y O FAM Chairman CHEONG CHOONG KONG Deput y Chairman/Chief Execut ive Off icer SIA an n u al r ep o r t 00...

  • Page 60
    ... the procedures for paying crew allow ances. Responsibility for maintaining Cabin Crew bank accounts w as segregated from Cabin Crew Division and now resides w ith an independent unit in Finance Division. 6. In January 2000, SIA commenced legal action against Teo, his w ife and his tw o children. In...

  • Page 61
    ... controls have been imposed. Sensitive positions have been identified and a staff rotation policy formulated. 12. Pricew aterhouseCoopers w as engaged to review SIA's current internal audit set-up w ith a view to enhancing its effectiveness. 13. Procedures to effect changes to computer programmes...

  • Page 62
    ... Singapore Airlines Limit ed, do hereby st at e t hat in the opinion of t he direct ors:(i) t he accompanying f inancial st at ement s set out on pages 62 t o 91 are draw n up so as t o give a t rue and f air view of t he st at e of aff airs of t he Group and of t he Company as at 31 M arch 2001...

  • Page 63
    ... not subject t o any qualif icat ion and in respect of subsidiary companies incorporat ed in Singapore did not include any comment made under Sect ion 207(3) of t he Act . SIA an n u al r ep o r t 00/01 61 ERNST & YOUNG Cert if ied Public Account ant s Dat ed t his 18t h day of M ay 2001 Singapore

  • Page 64
    ... and incent ives Crew expenses Handling charges Aircraf t maint enance and overhaul cost s Inf light meals Landing, parking and overf lying charges M at erial cost s Advert ising and sales cost s Ot her passenger cost s Company accommodat ion and ut ilit ies SIA an n u al r ep o r t 00/01 2,093...

  • Page 65
    Balance Sheets at 31 M arch 2001 (in $ million) The Group Notes 2001 2000 The Company 2001 2000 SHARE CAPITAL Aut horised Issued and f ully... w it hin one year Bank overdraf t s - unsecured Trade credit ors Sales in advance of carriage Provision f or t axat ion Proposed f inal dividend, less t ax...

  • Page 66
    ...1999 Share of joint vent ure company' s capit al reserves Currency t ranslat ion diff erences Goodw ill w rit t en-off t o reserves Share buyback Net gains and losses not recognised in t he prof it and loss account Prof it at t ribut able t o shareholders f or t he f inancial year SIA an n u al r ep...

  • Page 67
    Statements of Changes in Equity for the financial year ended 31 M arch 2001 (in $ million) The Company Note Share capital Share premium Capital redemption reserve Special nondistributable reserve General reserve Total Balance at 31 M arch 1999 Share buyback Net gains and losses not recognised in t...

  • Page 68
    ... Proceeds f rom ret urn of capit al by subsidiary companies NET CASH USED IN INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES Share buyback Dividends paid Dividends paid by subsidiary companies t o minorit y int erest s Dividends received f rom share buyback Proceeds f rom/(repayment of...

  • Page 69
    ... ered off ice of t he Company is at Airline House, 25 Airline Road, Singapore 819829. During t he f inancial year, t he principal act ivit ies of t he Group and of t he Company consist of air t ransport at ion, engineering services, airport t erminal services, t raining of pilot s, air chart ers and...

  • Page 70
    Notes to the Financial Statements 31 M arch 2001 2 Accounting Policies (continued) (d) Fixed assets Fixed asset s are st at ed at cost less accumulat ed depreciat ion. The cost of an asset comprises it s purchase price and any direct ly at t ribut able cost s of bringing t he asset t o w orking ...

  • Page 71
    ... aircraf t maint enance and overhaul cost s on an incurred basis. The Company w ill recognise t he ret rospect ive eff ect of adopt ing SAS 31 as a change in account ing policy as of 1 April 2001. The cumulat ive adjust ment s f or prior years w ill be made t o t he opening general reserves of t he...

  • Page 72
    ... ed. Int erest cost s incurred af t er commissioning of t he aircraf t and complet ion of building project s are charged t o t he prof it and loss account . No int erest w as capit alised during t he f inancial year (1999-2000 : $ nil). (q) Revenue Passenger and cargo sales are recognised as operat...

  • Page 73
    ... (in $ million) Revenue earned is generat ed principally f rom t he carriage of passengers, cargo and mail, t he rendering of airport t erminal services, engineering services, air chart ers and t our w holesaling and relat ed act ivit ies. It excludes dividends f rom subsidiary companies, and in...

  • Page 74
    ... of aircraf t , spares and spare engines Dividends f rom subsidiary and associat ed companies Share of prof it s of joint vent ure companies Share of prof it s of associat ed companies Except ional it ems Provision f or t axat ion Prof it af t er t ax SIA an n u al r ep o r t 00/01 934.9 180.6 67...

  • Page 75
    ...Statements 31 M arch 2001 Others 2000 - 2001 1999 - 2000 Total of segments 2000 - 2001 1999 - 2000 Elimination* 2000 - 2001 1999 - 2000 Consolidated 2000 - 2001 1999 - 2000....3 (296.5) 1,167.4 SIA an n u al r ep o r t 00/01 73 2001 2000 2001 2000 2001 2000 2001 2000 355.7 356.6 16,754...

  • Page 76
    ...t able present s revenue inf ormat ion regarding geographical segment s f or t he f inancial years ended 31 M arch 2001 and 2000. By area of original sale 2000 - 2001 1999 - 2000 East Asia Europe Sout h West Pacif ic Americas West Asia and Af rica Syst emw ide Non-scheduled services and incident al...

  • Page 77
    ... - 2001 1999 - 2000 Current t axat ion Overprovision in prior years Def erred t axat ion Share of joint vent ure companies' t axat ion Share of associat ed companies' t axat ion 140.0 (1.9) 166.3 2.9 10.1 317.4 294.9 (16.3) 10.5 2.6 4.8 296.5 113.5 - 154.0 - - 267.5 384.4 (10.0) - - - 374.4 SIA...

  • Page 78
    ...o employees. This dilut ive eff ect is comput ed based on t he diff erence bet w een t he number of shares under opt ion and t he number of shares t hat could have been issued at f air values. SIA an n u al r ep o r t 00/01 10 Share Capital (in $ million) The Company 31 M arch 2001 2000 Authorised...

  • Page 79
    ... Statements 31 M arch 2001 10 Share Capital (in $ million) (continued) As at 31 M arch 2001, t he unissued ordinary shares under The Singapore Airlines Limit ed Employee Share Opt ion Plan w ere as f ollow s: (i) 13,562,150 ordinary shares at $15.96 per share exercisable bet w een 28 M arch 2000...

  • Page 80
    ... ure as capit al allow ances available f rom t he 78 acquisit ion of new aircraf t are available f or set -off against f ut ure prof it s. 14 Long-Term Liabilities (in $ million) The Group 31 M arch 2001 2000 2001 The Company 31 M arch 2000 Not es payable Repayable w it hin one year Repayable af...

  • Page 81
    ...he Company holds opt ions t o ext end t he leases f or a f urt her maximum period of 2 years. None of t he operat ing agreement s conf er t o t he Company any opt ions t o purchase t he relat ed aircraf t or engines. Sub-leasing is allow ed under all t he lease arrangement s. 79 SIA an n u al r ep...

  • Page 82
    ... 288.6 1,094.7 482.9 1,866.2 15 Fixed Assets (in $ million) The Group Disposals/ Transfers Provision for w ritedow n in value 1 April 2000 Additions 31 M arch 2001 Cost Aircraf t Aircraf t spares Aircraf t spare engines Freehold land and buildings SIA an n u al r ep o r t 00/01 14,341.1 1,241...

  • Page 83
    Notes to the Financial Statements 31 M arch 2001 15 Fixed Assets (in $ million) (continued) The Company 1 April 2000 Additions Disposals/ Transfers 31 M arch 2001 Cost Aircraf t Aircraf t spares Aircraf t spare engines Freehold land and buildings Leasehold land and buildings Plant and equipment ...

  • Page 84
    Notes to the Financial Statements 31 M arch 2001 16 Subsidiary companies (in $ million) The Company 31 M arch 2001 2000 Invest ment in subsidiary companies (at cost ) Quot ed equit y invest ment s Unquot ed equit y invest ment s * 317.0 317.0 Writ edow n f or diminut ion in value (9.8) 307.2 Loans...

  • Page 85
    ... 100 SATS Cat ering Pt e Lt d SATS Securit y Services Privat e Limit ed SilkAir (Singapore) Privat e Limit ed Tradew inds Tours & Travel Privat e Limit ed Singapore Aviat ion and General Insurance Company (Pt e) Limit ed SIA Engineering Company Limit ed SIA Propert ies (Pt e) Lt d - do - do - do...

  • Page 86
    ... ed companies. SIA Engineering Company Limit ed acquired a 30.0% equit y int erest in Rohr Aero-Services-Asia Pt e Lt d on 29 M arch 2001 and 40% equit y int erest in M essier Services Asia Pt e Lt d on 7 July 2000, at a cost of $26.1 million and $14.0 million respect ively. Goodw ill arising...

  • Page 87
    ... Airport Inf light Kit chen Limit ed - do M aldives People's Republic of China - do Bermuda Indonesia - do Pakist an Hong Kong - do Viet nam India Sw it zerland Taiw an - do Philippines Ireland 5.67 0.29 13.88 - 0.29 13.88 21 30 35 - 40 40 Beijing Aviat ion Ground Services Company Lt d Asia...

  • Page 88
    ... Statements 31 M arch 2001 18 Joint Venture Companies (in $ million) The Group 31 M arch 2001 2000 2001 The Company 31 M arch 2000 Invest ment in joint vent ure companies (unquot ed, at cost ) Share of post acquisit ion reserves - general reserve - f oreign currency t ranslat ion reserve - capit...

  • Page 89
    ...The Group 31 M arch 2001 2000 2001 The Company 31 M arch 2000 Quot ed at cost Equit y invest ment s Non-equit y invest ment s 28.7 340.9 369.6 Unquot ed invest ment s at cost Trade invest ment s Non-equit y invest ment s 77.7 70.3 148.0 Writ edow n f or diminut ion in value/losses (20.3) 127.7 Long...

  • Page 90
    ... 31 M arch 2001 2000 2001 The Company 31 M arch 2000 Fixed deposit s Cash and bank 1,136.1 136.2 1,272.3 961.3 180.8 1,142.1 760.4 106.6 867.0 805.1 139.1 944.2 88 24 Trade Creditors (in $ million) The Group 31 M arch 2001 2000 2001 The Company 31 M arch 2000 Trade credit ors Provision f or...

  • Page 91
    ...735.7 - 78.5 (42.3) 2.7 (289.2) - 1,621.5 (39.8) (221.6) 122.0 1,482.1 89 SIA an n u al r ep o r t 00/01 136.1 26 Analysis of Capital Expenditure Cash Flow (in $ million) The Group 2000 - 2001 1999 - 2000 The Company 2000 - 2001 1999 - 2000 Purchase of f ixed asset s Less: Asset s acquired under...

  • Page 92
    ...546.3 276.8 823.1 90 Unrealised (loss)/gain not account ed f or (42.9) 69.8 (42.4) 69.3 (c) Commit ment s of subsidiary companies in respect of non-cancellable operat ing leases f or premises are as f ollow s:The Group 31 M arch 2001 2000 W it hin one year Af t er one year but not more t han...

  • Page 93
    ... ains subst ant ial insurance coverage w hich is suff icient t o cover any claims arising f rom t he crash. Accordingly, SIA believes t hat t he resolut ion of t hese claims w ill have no mat erial impact on t he f inancial posit ion of SIA. SIA is unable t o ident if y or predict t he ext ent of...

  • Page 94
    ... year ended 31 M arch 2001 include direct ors' f ees of $630,000 w hich is derived using t he f ollow ing rat es:The Company 2000 - 2001 $ Type of appoint ment (i) Board of Direct ors - Basic Fee - Chairman's Allow ance - Deput y Chairman's Allow ance (ii) Board Commit t ees SIA an n u al r ep...

  • Page 95
    ... Lt d Sesami.com Pt e Lt d Saf e2 Travel.com Pt e Lt d SNP Corporat ion Lt d Singapore M RT Lt d ECICS Credit Insurance Lt d Int raco Lt d Fujit ec Singapore Corporat ion Lt d Radio Corporat ion of Singapore Pt e Lt d Singapore Television Tw elve Pt e Lt d Singapore Post Pt e Lt d Pow er Aut omat...

  • Page 96
    ....3 100.0 1,163.8 100.0 94 Earnings (after tax) per share 2000-01 1999-00 (cent s) (% ) (cent s) (% ) 93.1 73.6 46.1 50.4 33.4 26.4 45.3 49.6 126.5 100.0 91.4 100.0 * Total revenue and expenditure w ere restated for 1999-00 to comply w ith Statement of Accounting Standard (SAS) 1 [Presentation of...

  • Page 97
    ...the Group (In Singapore Dollars) 2000 - 01 1999 - 00 1998 - 99 1997 - 98 1996 - 97 Profit and Loss Account ($ million) Tot al revenue [Not e 1] Tot al expendit ure [Not e 1] Operat ing prof it Int erest on borrow ings Surplus on disposal of aircraf t , spares and spare engines Share of prof it...

  • Page 98
    ...flow comprises cash generated from operations, dividends from associated companies, and proceeds from sale of aircraft and other fixed assets. Cash earnings is defined as profit after tax and minority interests plus depreciation. SIA local share and SIA Foreign share w ere merged follow ing approval...

  • Page 99
    ... 00 01 Revenue Passenger-km (M illion) 14,000 6,000 Revenue Passenger-km (M illion) Cargo Tonne-km (M illion) Passenger Number Cargo Tonne Average Fleet Age : SIA and Indust ry Wide 200 200 Aircraft SIA's Fleet as at 31 M arch 2001 Engine In On operation firm order On option 160 Age (M onths...

  • Page 100
    Ten- Year Statistical Record of the Company 2000 - 01 1999 - 00 1998 - 99 1997 - 98 Financial Tot al revenue* Tot al expendit ure* Operat ing prof it Prof it bef ore t ax Prof it af t er t ax Int ernally generat ed cash f low + Capit al disbursement s Yield Unit cost Breakeven load f act or ($ ...

  • Page 101
    Ten- Year Statistical Record of the Company 1996 - 97 1995 - 96 1994 - 95 1993 - 94 1992 - 93 1991 - 92 ...231.3 70 165.0 211,435 8,982.3 53,077.6 3,630.0 67 142.3 180,744 7,624.4 47,454.3 2,898.3 SIA an n u al r ep o r t 00/01 99 12,022 54,692.5 74.4 674.2 4,249.4 68.5 99.2 9,512.0 70.5 11...

  • Page 102
    ... 2001 Singapore Airlines Limited 87% Singapore Airport Terminal Services Limit ed 100% SilkAir (Singapore) Privat e Limit ed 100% Tradew inds Tours & Travel Privat e Limit ed SH Tours Lt d Abacus Travel Syst ems Pt e Lt d 100% 56% Abacus Travel Syst ems Pt e Lt d 87% SIA Engineering Company Limit...

  • Page 103
    ... Asia Airf reight Terminal Company Lt d 24% Singapore Airport Dut y-Free Emporium (Privat e) Limit ed 20% M acroAsia-Eurest Cat ering Services Note 1 Asian Frequent Flyer Pte Ltd and DSS World Sourcing Ltd are under voluntary liquidation and not included in this chart. 101 SIA an n u al r ep...

  • Page 104
    ...ay 2001 Aut horised share capit al Issued and f ully paid capit al Class of shares $6,000,000,001 $1,218,143,623 a) c) 3,000,000,000 ordinary shares of $1.00 each 3,000,000,000 Air Services Agreement s (ASA) shares of par value $1.00 each Number of shareholders % Number of shares % b) One special...

  • Page 105
    ... M ay 2001 M ajor shareholders Number of shares % 1 2 3 4 5 6 7 8 9 Temasek Holdings (Privat e) Limit ed Raff les Nominees Pt e Lt d DBS Nominees Pt e Lt d HSBC (Singapore) Nominees Pt e Lt d Cit ibank Nominees Singapore Pt e Lt d DB Nominees (S) Pt e Lt d Unit ed Overseas Bank Nominees Pt e Lt...

  • Page 106
    ... 2001 High Low 2,500 2,000 Index 1,500 1,000 Turnover ST Index Closing Price 2000-01 1999-00 Share Price ($) Highest closing price Low est closing price 31 M arch closing price 19.20 12.90 13.60 20.80 12.40 16.00 SIA an n u al r ep o r t 00/01 M arket Value Ratios* Price/Earnings Price...

  • Page 107
    ... Meeting Singapore Airlines Limit ed (Incorporat ed in t he Republic of Singapore) Notice is hereby given t hat t he Tw ent y-Nint h Annual General M eet ing of t he Company w ill be held at t he M andarin Court , 4t h Floor, M ain Tow er, M andarin Singapore, 333 Orchard Road, Singapore 238867...

  • Page 108
    ... and vot e in his st ead. A proxy need not be a member of t he Company. The inst rument appoint ing a proxy must be deposit ed at t he Company's regist ered off ice at Airline House, 25 Airline Road, Singapore 819829 not less t han 48 hours bef ore t he t ime appoint ed f or t he M eet ing. 2. 106

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